BOSTON, Nov 11 It may be years before a sense
of normalcy returns to Penn State after the child sex abuse
scandal that rocked the campus this week, with fund-raising,
sports recruiting and the university's credit rating likely to
feel the sting.

"From now, when you mention Penn State, the first thing
people will think about is the scandal. The legacy can not help
but be tainted," said Dan Lebowitz, executive director of the
Sport in Society program at Northeastern University in Boston.

The tumult began when Jerry Sandusky, a former assistant
football coach, was charged with sexually abusing boys over 15
years, with some of the incidents occurring on team premises.
Two former university officials were charged with not reporting
at least one known alleged assault to the police.

On Wednesday, Joe Paterno, who coached Penn State's
football team for 46 years, and university president Graham
Spanier were removed by Penn State's board of trustees as it
sought to start the healing process.

Both had been criticized by state investigative officials
for not doing more to intervene after learning that Sandusky
was seen allegedly sexually abusing a boy in the locker room
showers in 2002 by then graduate assistant, and now assistant
coach, Mike McQueary.

Penn State University, a diverse, multi-campus state-funded
college with an endowment of $1.5 billion, is well into its
biggest ever fund-raising drive. The "For the Future" campaign
had raised $1.3 billion by April 30, toward a goal of $2
billion by 2014.

The university this week canceled or postponed several
events related to the fund-raising campaign, including the
"President's Tailgate" before Saturday's home football game
against Nebraska. A tailgate is a pre-game parking lot party.

On Wednesday, campaign chair Peter Tombros appealed to the
university's supporters not to turn their backs on Penn State
because of the scandal.

"This is not a moment to reconsider our commitment to the
university. I urge you to continue to support the campaign and
the students whose lives will be transformed by your
philanthropy," Tombros said.

The letter included a disclaimer that all fund-raisers
surely dread to write: "I also want to assure you that no
private funds or philanthropic resources will be directed
toward legal expenses for the university employees who have
been charged in the case."

PROMINENT ALUMNI

The ratings agency Moody's Investor Services said that
philanthropy toward Penn State could decline as a result of the
scandal. It cited "reputational and financial risk" on Friday
in saying it was considering a downgrade on Penn State's
roughly $1 billion in highly-rated debt.

At least one major donor is standing firm.

Terry Pegula, a billionaire natural gas tycoon and owner of
the Buffalo Sabres National Hockey League team, has donated $88
million to construct a new ice hockey arena and create men's
and women's varsity hockey programs at the school.

"Our own support for Penn State and its hockey program is
well known and will continue," Pegula said in a statement.

Interim Penn State President Rodney Erickson said he had
received "more than 1,000 notes of support" from members of the
university's far-flung community.

"Our friends, our alumni, our donors, those who have made
significant contributions to the university, are sticking with
us," Erickson said at a press conference.

Penn State has more than half a million alumni. Some are
prominent members of the business community, including Kenneth
Frazier, chief executive of Merck & Co., John Surma, chief
executive of U.S. Steel Corp., and Patricia Woertz, chief
executive of agribusiness giant Archer Daniels Midland Co.

Surma and Frazier are among the university's trustees.
Frazier will chair the special investigative committee into the
Sandusky scandal, announced on Friday.

Philanthropy specialists said worries about fund-raising
when an institution gets into trouble are sometimes exaggerated
-- but acknowledge that Penn State is facing a situation of
unprecedented severity.

"In this case, it is difficult to predict how future
donations will be affected," said Nancy Albilal, vice president
for development at The Foundation Center, a New York-based
group that tracks information on philanthropy worldwide.

Typically, she said, when a public scandal hits a large
institution, unrestricted donations fall while program-specific
donations rise, resulting in no significant change overall.

One thing that keeps alumni engaged in university life and
ready to open their checkbooks is a winning football team. But
prospects for the Penn State Nittany Lions are uncertain with
the 46-year Paterno era now over.

"I think the fallout on recruiting and the team will be
extremely long-lived. Joe Paterno is Penn State football," said
Josh Helmholdt, a football recruiting analyst at rivals.com.

A top recruit for 2012, offensive lineman Joey O'Connor
from Colorado, has already backed out of a verbal pledge to
join Penn State, saying he wanted to consider offers from other
universities, according to a newspaper report.

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